Business tools and budgeting

Most dairy producers we've met would rather be out in the barn than thinking about cost ratios, budgets, or land values. These University of Minnesota resources might not make budgeting fun, but will make it easier. For more on ag business and farm finances, visit Extension's Agricultural Business Management program.

What establishes milk price? Simply put, if we supply the market with more product than it is demanding, prices fall. If we produce less than the market demands, price increases. It is supply and demand!

Producers do not install robots because it is the lowest cost option for harvesting milk. However, it is important to develop a realistic cash flow and carefully think about how much capital you want to tie up in your milking system.